Are more people getting paid in Bitcoin?
in Bitcoin (BTC)
Although they represent only a small percent of the overall workforce, tens of thousands of people from all corners of the globe get paid in Bitcoin instead of a government-backed currency like dollars or euros.
This article will explain how you can get paid in Bitcoin, the advantages of a crypto salary, and three examples of companies that pay wages in BTC rather than a fiat currency.
How to Get Paid with Bitcoin
There are two ways to get paid in Bitcoin. The first is to find an employer who is already paying their staff in crypto. Unfortunately, not many companies are currently doing this so it could take a while to find a job.
The second way to get paid in Bitcoin is to convince your employer to do so. Russell Okung is a famous example of someone who pulled this off.
In May 2019 Russell, an offensive tackle for the Carolina Panthers, tweeted “Pay me in Bitcoin.” The tweet became so popular in the crypto community that even the mainstream media picked up on it. Pay me in Bitcoin made a great headline but most people were skeptical that it would ever actually happen.
Well, a year and a half later Russel triumphantly tweeted, “Paid in Bitcoin.” The Carolina Panthers agreed to pay half of Russel’s salary in Bitcoin, making Russ the first professional athlete in the United States to get paid in crypto. One small step for man, one giant leap for crypto.
Not everyone has as much influence as a NFL athlete when it comes to bargaining with management, however it never hurts to ask your boss if a Bitcoin salary is possible.
The Benefits of Getting Paid in Bitcoin
The following are five of the top benefits of getting paid in Bitcoin.
1. Receive your paycheck immediately
Let’s say you live in the USA and you’re working for a client in Sweden. If the Swedish client pays you with a bank transfer it can take five days for the money to come through, and you’ll lose about 10% of your paycheck just to pay the transaction fees.
With Bitcoin the payment clears in less than an hour and the fees are relatively small. The average transaction fee in June of 2021 was $6. If your paycheck is $600, the BTC fee would cost 1% of your paycheck instead of 10%.
Furthermore, Bitcoin transaction fees don’t increase with the amount being sent. In 2020 a wealthy individual sent more than $1 billion in BTC and paid less than $5 in fees.
2. No lost transactions
Sometimes banks flag payments, both international and domestic, as “suspicious” and freeze the funds before they reach someone’s account. In order to get their money the bank client must prove where it’s coming from and that they came by the funds legally. That’s a big hassle, just to get money that’s rightfully yours!
Bitcoin solves this. As a permissionless network it will never freeze a payment or deny you access to your money.
3. Stacking Sats made easy
When you get paid in Bitcoin it’s easy to stack sats,or save up some BTC in your investment account. Just set aside a small part of every paycheck and watch your Bitcoin balance grow over time.
4. You’re supporting the Bitcoin network
Every time a business pays their employees with BTC, versus the banking system, they’re supporting the Bitcoin network. All Bitcoin transaction fees go to the miners which helps to keep the network secure.
One-hundred businesses paying their employees in Bitcoin won’t make much difference, but what if ten-thousand or fifty-thousand businesses start doing it? At some point, all of that traffic is enough to meaningfully benefit Bitcoin and improve its network security.
5. Instant remittances
As soon as you receive Bitcoin you can instantly send it to anyone else, anywhere in the world. This is incredibly useful for people who want to send money back home. Instead of going to Western Union or another money transmitting service, a person who gets paid in Bitcoin can send part of their salary to a family member within an hour of getting paid.
Real World Usage
As of 2021 there aren’t that many companies that are paying their employees in Bitcoin, however, these three organizations are exceptions to the rule:
Autoline, an automotive store in Mesa, Arizona, is one company that gives employees the option to receive part or all of their salary in Bitcoin. Nick Jackson is the founder of Autoline and his early investment in BTC made him a big believer in the decentralized currency. So far three of the company’s seventeen employees have elected to get paid in Bitcoin.
The comparison website Finder might be the first Australian company to pay its employees in Bitcoin. According to the company’s CEO, Fred Schebesta, it took about a year to get through all of the accounting and regulatory hurdles in order to enable Bitcoin payments. Schebesta feels like it was worth it though, since almost all of the company’s employees are in their twenties and thirties and interested in crypto.
As of now employees have the opportunity to receive up to 25% of their paycheck in Bitcoin, although Finder plans to support other cryptocurrencies at a later date. This is a big step towards crypto adoption in Australia and we hope that other companies follow Finder’s lead.
Exodus is a well-known name in crypto and also one of the most respected cryptocurrency companies to pay their employees in BTC. A Bitcoin standard at Exodus works great since we have an international workforce and paying everyone with bank transfers would be a nightmare.
If you’re interested in getting paid in Bitcoin you should definitely check out Exodus’s careers page!
Have you considered...
Do you want to get your paycheck in crypto? Before you ask your employer about getting paid in Bitcoin be sure to consider these three points:
1. Crypto is volatile
The price of Bitcoin is so volatile that if you wait one day to exchange your Bitcoin into fiat your paycheck could already be worth 10% more, or even 10% less! If you want to get paid in Bitcoin you should plan on converting your salary into dollars or euros immediately, to avoid Bitcoin’s famous volatility.
2. What are the tax implications
Before getting paid in Bitcoin make sure you understand how Bitcoin is taxed in your country. Every country treats crypto differently and you don’t want to end up with a large tax obligation that you weren’t expecting.
3. The bank factor
Some banks, especially banks in the UK, don’t like working with crypto exchanges. Before you start getting paid in Bitcoin, make sure your bank is willing to support withdrawals and deposits from a crypto exchange.
Mobile banking apps like Revolut may be a better option.
Getting Paid in Bitcoin: The Legal Status
The legal status of Bitcoin and a Bitcoin salary is different everywhere. In the United States it’s fine for most employees to get paid in Bitcoin, provided that they agree to accept crypto and not a traditional payment method.
Some states like New Jersey, Texas and Delaware have more restrictive laws though and employers will need to check whether it’s legal for employees from these states to receive Bitcoin as payment.
In the future there will hopefully be better laws which make it easy for employees to accept Bitcoin without any regulatory uncertainty.
Getting paid in Bitcoin is the Future
Even though Bitcoin payments aren’t that popular today, things are changing fast.
As online work becomes the norm, more employers are going to look for a way to pay their employees in the fastest, cheapest way possible. Whether this means getting paid in Bitcoin or another cryptocurrency is still open to debate.
But once you compare cryptocurrency to the banking system it’s obvious who the winner will be.
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.